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Campfire Tracker
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OP
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The gold-oil ratio just hit a 124 year high. The historical average is around an ounce of gold for 15-20 barrels. Today it's double. Is gold too expensive or oil too cheap? I think the gold miners are set to make some $$$. What do you think? ![[Linked Image]](http://www.iii.co.uk/sites/default/files/Gold%20oil%20g1(s).jpg)
Quando omni flunkus moritati
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Campfire Tracker
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Oil is way, way too cheap.
RS
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Campfire Ranger
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Campfire Ranger
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Gold isn't high enough and oil isn't cheap enough. We'll keep printing money.
�Politicians are the lowest form of life on earth. Liberal Democrats are the lowest form of politician.� �General George S. Patton, Jr.
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~Molɔ̀ːn Labé Skýla~
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2002
Posts: 33,666 |
I have never played with gold and have never regretted it.
Conduct is the best proof of character.
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Campfire Ranger
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Campfire Ranger
Joined: Feb 2011
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How's the oil/pork belly ratio doing?
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Campfire Ranger
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Campfire Ranger
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"All that the South has ever desired was that the Union, as established by our forefathers, should be preserved, and that the government, as originally organized, should be administered in purity and truth." – Robert E. Lee
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Campfire Ranger
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Campfire Ranger
Joined: Nov 2005
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Its a point of interest and has no relevance other to indicate one commodity is out of whack.
My home is the "sanctuary residence" for my firearms.
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Campfire Outfitter
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Campfire Outfitter
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Oil is low - bad.
Oil is high - bad.
--- CAUGHT IN THE CROSSFIRE --- A Magic Time To Be An Illegal In America---
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2011
Posts: 30,902 |
All of the commodities have come down in price, except gold...so it's gold that is too high.
You didn't use logic or reason to get into this opinion, I cannot use logic or reason to get you out of it.
You cannot over estimate the unimportance of nearly everything. John Maxwell
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Campfire Ranger
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Campfire Ranger
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All of the commodities have come down in price, except gold...so it's gold that is too high. Except that gold has always been a "safe haven" for investors and banks. When Wall Street is shaky or in a tailspin gold is where many park their money. Basically gold works inversely to the "market" but there are exceptions.
My home is the "sanctuary residence" for my firearms.
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2011
Posts: 30,902 |
All of the commodities have come down in price, except gold...so it's gold that is too high. Except that gold has always been a "safe haven" for investors and banks. When Wall Street is shaky or in a tailspin gold is where many park their money. Basically gold works inversely to the "market" but there are exceptions. Not exactly. It's more of a hedge against unstable currencies then stock markets.
You didn't use logic or reason to get into this opinion, I cannot use logic or reason to get you out of it.
You cannot over estimate the unimportance of nearly everything. John Maxwell
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Posts: 1,414
Campfire Regular
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Campfire Regular
Joined: Dec 2007
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The guys on "Gold Rush" are going to doubly profit. Not only will they get more for their gold, but fuel has always been the major expense of their operations.
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Campfire Ranger
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Campfire Ranger
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I used to think that oil would come screaming back. Now I'm not so sure...
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Joined: Jan 2011
Posts: 2,280
Campfire Regular
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Campfire Regular
Joined: Jan 2011
Posts: 2,280 |
The ratio is indeed out of the "normal" range. Today I think that oil is low relative to gold.
However, I fear war is coming in a greater way to the Middle East and I also fear the dollar will lose value.
Who knows how and when this would play out but $150 oil and $3000 gold would not surprise me. Might see $300 oil and $6000 gold.
Oil and gold are both "real" commodities with true intrinsic value and use. The dollar is just a fiat currency. The "dollar" or any of the current day fiat currencies are inefficient measures due to the "temporary" great supply of oil and the idiocy of the gov't's criminal monetary policies: The current oversupply in oil and the current fiat currency era will somehow end and I expect that oil and gold will work their way back to historical ratios. Problem is, what will the "measuring stick" be?
But, I could be wrong, that's what makes a market.
TF
Last edited by TF49; 02/11/16.
The tax collector said: “Lord Jesus, have mercy on me, a sinner.” Jesus said he went home “justified.”
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Joined: Nov 2011
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2011
Posts: 30,902 |
The ratio is indeed out of the "normal" range. Today I think that oil is low relative to gold.
However, I fear war is coming in a greater way to the Middle East and I also fear the dollar will lose value.
Who knows how and when this would play out but $150 oil and $3000 gold would not surprise me. Might see $300 oil and $6000 gold.
Oil and gold are both "real" commodities and the "dollar" or any of the current day fiat currencies are inefficient measures due to the "temporary" great supply of oil and the idiocy of the gov't's criminal monetary policies: The current oversupply in oil and the current fiat currency era will somehow end and I expect that oil and gold will work their way back to historical ratios. Problem is, what will the "measuring stick" be?
But, I could be wrong, that's what makes a market.
TF So you are predicting a Bernie Sanders victory?
You didn't use logic or reason to get into this opinion, I cannot use logic or reason to get you out of it.
You cannot over estimate the unimportance of nearly everything. John Maxwell
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Joined: Jan 2011
Posts: 2,280
Campfire Regular
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Campfire Regular
Joined: Jan 2011
Posts: 2,280 |
Sadly, I fear that it does not matter who wins. The problems of the day are greater than the statesmen of the day.
TF
The tax collector said: “Lord Jesus, have mercy on me, a sinner.” Jesus said he went home “justified.”
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Joined: Feb 2010
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Campfire Tracker
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OP
Campfire Tracker
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All of the commodities have come down in price, except gold...so it's gold that is too high. That makes sense. Now all I need to know is when.
Quando omni flunkus moritati
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Joined: Dec 2009
Posts: 4,638
Campfire Tracker
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Campfire Tracker
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All of the commodities have come down in price, except gold...so it's gold that is too high. Except that gold has always been a "safe haven" for investors and banks. When Wall Street is shaky or in a tailspin gold is where many park their money. Basically gold works inversely to the "market" but there are exceptions. You've been watching too many Fox News commercials.
I probably hit more elk with a pickup than you have with a rifle. I have yet to see anyone claim Leupold has never had to fix an optic. I know I have sent a few back. 2 MK 6s, a VX-6, and 3 VX-111s.
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Campfire Regular
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All of the commodities have come down in price, except gold...so it's gold that is too high. That makes sense. Now all I need to know is when. Something to consider; gold can trade as a commodity but at times it trades as "money." Gold traded as a commodity when it was seen as a useless relic. It went as low as $255/ounce. Then fear and the spectre of currency value losses set in and the rose to $1900. It was trading as "money" then. When we have calm economic times, gold will trade as a commodity but when monetary woes set in, it truly trades as a "currency" as it does today. TF
The tax collector said: “Lord Jesus, have mercy on me, a sinner.” Jesus said he went home “justified.”
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Campfire Tracker
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OP
Campfire Tracker
Joined: Feb 2010
Posts: 3,840 |
Something to consider; gold can trade as a commodity but at times it trades as "money." Gold traded as a commodity when it was seen as a useless relic. It went as low as $255/ounce. Then fear and the spectre of currency value losses set in and the rose to $1900. It was trading as "money" then. When we have calm economic times, gold will trade as a commodity but when monetary woes set in, it truly trades as a "currency" as it does today.
TF
Thanks, that's a good analysis.
Quando omni flunkus moritati
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